Stocks Look Priced for Perfection. These 3 Dividend ETFs Are Built for the Pullback
Quick Read
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The S&P 500 trades at roughly 20x forward earnings, above its 10-year average of 18.8x, leaving little margin if earnings disappoint.
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SCHD yields 3.28% while trading at just 18.4x earnings, screening holdings for dividend history, free cash flow, and return on equity.
Stock market today: Dow, S&P 500, Nasdaq rise as oil slips, Fed rate hike pacifies markets' inflation worries
The Bank of England voted to hold its benchmark bank lending rate unchanged at 3.75%, holding steady for now as Governor Andrew Bailey warned that inflationary pressures may push the central bank to hike in coming months.
Three members of the Monetary Policy Committee dissented,
Read MoreBofA says stock valuations signal negative annual returns over the next decade — and recommends rotating into an alternative index
It could be a brutal decade ahead for stocks, according to a valuation signal used by Bank of America.
In a September 14 client note, the bank said that the S&P 500‘s normalized price-to-earnings ratio — which compares stock prices to average earnings over multiple years — currently sits at 32.
Read MoreGreg Abel Exited a Consumer Brand Warren Buffett Backed for 6 Straight Quarters. Here's Why That Was the Wrong Move.
Greg Abel has the unenviable task of succeeding legendary investor Warren Buffett as CEO of Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB). Still, it’s only natural that Abel will put his own stamp on the company he leads.
That includes making changes to the portfolio.
Will Rising Interest Rates Send Gold Back to Its Highs?
Gold has been rising in value in recent months, currently trading at around $4,300 per ounce. It’s nowhere near the level of more than $5,000 that it reached early on in the year, but with the Fed recently raising interest rates and plenty of uncertainty in the markets this year, it could rally again.
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Read MoreThe Burst
Is This The Perfect Bitcoin Strategy?
A decade or so ago, betting on bitcoin really was risky. The cryptocurrency was entirely unproven, unregulated, little-known and fraught with risk. Fast forward 10+ years and the times have changed substantially in favor of Satoshi’s creation.
Now exchange-traded funds exist that facilitate regular flows into the cryptocurrency and some companies, like Microstrategy,
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Read MoreThe Ivy
Why Charlie Munger Never Sold Costco Stock — Even When It Looked Overvalued
Charlie Munger became famous in the investment world as Warren Buffett’s right-hand man at Berkshire Hathaway and the architect of Berkshire’s philosophy of buying great businesses at fair prices versus the prior mantra of buying good businesses at great prices.
Over a nearly 100-year life, Munger would pass up innumerable investment opportunities, choosing to put money only into the few that truly offered exceptional value.
» Read more about: Why Charlie Munger Never Sold Costco Stock — Even When It Looked Overvalued »
Read MoreThe Spotlight
How Warren Buffett Makes $4 Billion a Year in Dividends
Bank of America
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